-Economic effects of tax policy Archive
The Short Run Growth and Inflation Effects of Build Back Better Are Likely to Be Very Modest
November 17, 2021
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TweetShareSharePin0 Shares A key issue in the congressional debate over President Biden’s Build Back Better (BBB) plan is how it would affect the economy over the next couple of years. Identifying precise effects is unusually difficult due to the economic circumstances stemming from the pandemic. But the bill’s overall short-run effects on both growth and
The Short Run Growth and Inflation Effects of Build Back Better Are Likely to Be Modest
November 17, 2021
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TweetShareSharePin0 Shares A key issue in the congressional debate over President Biden’s Build Back Better (BBB) plan is how it would affect the economy over the next couple of years. Identifying precise effects is unusually difficult due to the economic circumstances stemming from the pandemic. But the bill’s overall short-run effects on both growth and
It’s Long Overdue for Public Finance Scholars to Study Racism in the Tax Code
November 4, 2021
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TweetShareSharePin0 Shares The murder of George Floyd, in May 2020, sparked a national reckoning and renewed attention to issues of racial equity and justice. This long-overdue awakening led me to read extensively about racism and to think about interactions between race and tax policy. In a new paper, “Public Finance and Racism” I explore some
Settling the Dust of the Coal Industry
November 3, 2021
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TweetShareSharePin0 Shares Coal miners increasingly are victims of a cruel paradox. Even as production declines, more are suffering from deadly black lung disease. Yet falling production and growing efforts to combat climate change will slash the federal funds to support sick workers and their families. This problem can be resolved, but it will require policymakers
What is Dynamic Scoring? TPC’s Ben Page and John Buhl Discuss the Basics
November 1, 2021
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TweetShareSharePin0 Shares With Congress in the midst of an intense debate over a big new tax and spending bill, policymakers are battling over the costs and economic benefits of many proposals. One way to measure those is dynamic scoring—a tool that makes it possible to better understand how policy changes affect the overall economy, and
Why Progressivity in Tax Policy Is Not A Simple Matter
October 20, 2021
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TweetShareSharePin0 Shares Policymakers and even policy analysts often consider the progressivity of specific proposals independently from the broader systems in which they operate. Consequently, they often leave the public with a misleading impression of how those proposals affect various income groups. Here are four examples of how specific programs might appear to be regressive yet
Low Interest Rates Have Implications for Tax Policy
September 23, 2021
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TweetShareSharePin0 Shares As of this morning, yields on 10-year Treasury bonds stood at 1.33 percent. The yield on TIPS bonds–which are adjusted for inflation–was negative. These astonishingly low returns, occurring even in the presence of a growing economy and rising inflation fears, are not new. Interest rates on government debt have been falling in many
What’s Easier: Killing Aliens, Or Levying A Vehicle-Mileage Tax?
September 1, 2021
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TweetShareSharePin0 Shares My teenaged son and I just watched the science-fiction thriller “The Tomorrow War,” in which a future government drafts present-day civilians to travel forward in time and fight an alien invasion. It turns out (spoiler) that the extra-terrestrials had crashed into one of Earth’s glaciers centuries ago. Climate change melts the ice and
Searching for Supply-Side Effects of The Tax Cuts and Jobs Act
July 6, 2021
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TweetShareSharePin0 Shares The 2017 Tax Cut and Jobs Act (TCJA) was built on the idea that lower business and corporate tax rates, new domestic investment incentives, and guardrails against international profit shifting would increase investment, make workers more productive, and ultimately raise output and wages. Did it work? In a new paper with my Tax
Treasury Will Allow States to Take ARP Funds and Cut Taxes, With Some Guardrails
May 13, 2021
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TweetShareSharePin0 Shares On Monday, the U.S. Treasury Department released much-anticipated guidance for the American Recovery Plan’s (ARP) $350 billion in direct state and local aid, including details on how it will implement the law’s restriction on using ARP funds for state tax cuts. Treasury’s rules give states plenty of flexibility. But there are limits, and
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